Aggressive Option Sellers? Tata Motors Demerger - Pre-Market Analysis Report

What Happened Yesterday?

NIFTY started the day flat at 21,411 and consolidated. Trading happened in a tight zone of just 80 points and between the levels of Saturday. NIFTY closed the day at 22,405, up by 27 points or 0.12%.

U.S. markets closed in the red. The European markets closed mixed.

What to Expect Today?

Asian markets are trading in the red.

The U.S. Futures are in slight red.

GIFT NIFTY is trading in red at 22,470.

All the factors combined indicate a flat to gap-down opening in the market.

NIFTY has supports at 22,360, 22,280 and 22,175. We can expect resistances at 22,430, 22,500 and 22,600.

BANKNIFTY has supports at 47,200, 46,950 and 46,700. We can expect resistances at 47,420, 47,600 and 47,800.

FINNIFTY has supports at 20,810, 20,745 and 20,640. We can expect resistance at 21,000, 21,080 and 21,200.

In NIFTY, there is high call OI resistance at 22,400. There is a high put OI support at 22,200. PCR is bullish at 1.25.

In BANKNIFTY, there is high call OI resistance at 47,500. There is a high put OI support at 47,000. PCR is bullish at 1.21.

Foreign Institutional Investors net-sold shares worth Rs 564 crores. Domestic Institutional Investors net-bought shares worth Rs 3,542 crores.

INDIA VIX was flat at 14.92.

After their non-stop rallies, markets in India and around the world cooled down yesterday. 

This in turn has given confidence to a lot of players to be over-aggressive. There are some high OI buildups at nearby strikes, which look more aggressive than required. 

At the time of high VIX, enjoy premiums at far away strikes and don’t be aggressive. As this OI number goes up, the impact of that level getting broken will increase.

Right now, we are seeing good put OI buildup at 22,200. Similar to the 22nd and 28th of Feb, we may see a big downside if this level is broken.

Tata Motors demerger has been announced, with 2 separate entities for its passenger and commercial vehicles businesses. Promoters are acquiring a fresh stake in Jio Financial Services.

Reliance crossed the 3,000 mark.

It is the FINNIFTY expiry today. Trade safe according to the levels shared!

We will be entering fresh NIFTY and BANK NIFTY trades today. You can check out our trades on the marketfeed app or our website!

All the best for the day!